Form an RIA

Dually Registered Advisors in SEC Crosshairs

Added on April 2014 in Form an RIA

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Summary: Dually registered advisors can provide fee-based advisory services through the RIA wing of the practice while also offering clients a galaxy of commission-based products. Many RIAs like the option because they don't have to send clients elsewhere to purchase insurance or a variety of other products; broker-dealer reps find they can differentiate themselves by offering more fee-based services.

Serious Concern, Optimism Follow New SEC Social Media Rules

Added on April 2014 in Form an RIA

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Summary: Planner Winnie Sun isn’t afraid of social media. For the past decade, she’s used it to build her firm, Sun Group Wealth Partners of Irvine, Calif. But the LPL advisor says she has serious concerns about new guidance from the SEC allowing advisors to publish links to third-party testimonials from websites like Yelp that rate and publish public comments about establishments ranging from restaurants and plumbers to investment advisors.

LLC or C Corp? The Tax Implications for Advisors

Added on March 2014 in Form an RIA

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Summary:In early 2012 I posted a blog on a change I had made in my business structure. Specifically, I closed the LLC and changed to a C Corp. That blog garnered a lot of good comments, as many advisors were interested in reducing their own tax burden. That year, 2012, was the first in which I filed as a C Corp and 2013 will be the second. Now that I have had some time under the new structure, I thought I'd reveal the results.

How Old Is Too Old to Leave Merrill or Morgan Stanley?

Added on March 2014 in Form an RIA

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Summary: Bob Fragasso was 50 years old in 1996, when he walked away from a six-figure deferred-compensation plan at Smith Barney and founded an independent firm. But could he muster the energy to break away today, at age 68? “Absolutely,” says Fragasso. Though experts agree age isn’t the main thing keeping older wirehouse advisors from going independent, industry estimates suggest that the prime age range for breakaways is between 40 and 50.

Are You Worth More Than 1%?

Added on March 2014 in Form an RIA

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Summary:

RIAs are loathe to increase their fees, believing it alienates clients. But a recent analysis by Russell Investments shows advisors are worth as high as 4.33 percent, much higher than the typical 1 percent that many FAs charge for their services. In a blog post on Russell’s website, Brad Jung writes that the value of an advisor is more than 1 percent. Jung suggests advisors use the following formula to determine how much they should be charging:

A + B + C + P > Your fee